Libby and her friend Joe both opened a savings account. Libby made a $500 deposit into her bank account that earns 2.3% simple interest. Joe made a $500 deposit into his bank account, which earns 2.5% compound interest. How much more money will Joe have in his account than Libby after 5 years? HINT: Simple Formula only gives you the Interest, Compound Formula gives you the Total Balance!

Abank manager wants to encourage new customers to open accounts with principals of at least $2 comma 500. he decides to make a poster advertising a simple interest rate of 3%. what must the principal be if the bank manager also wants to advertise that one can earn $10 the first month? can the poster correctly say, "open an account of $2 comma 500 and earn at least $10 interest in 1 month! "?